Red Hat Reports First Quarter Results

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source
solutions, today announced financial results for its fiscal year 2015
first quarter ended May 31, 2014.

Total revenue for the quarter was $424 million, an increase of 17% in
U.S. dollars from the year ago quarter, and 17% measured in constant
currency. Constant currency references in this release are as detailed
in the tables below. Subscription revenue for the quarter was $372
million, up 18% in U.S. dollars year-over-year, or 17% measured in
constant currency.

“Our strong start to FY15 is a direct result of our ability to
consistently deliver meaningful value to enterprise customers,” stated
Jim Whitehurst, President and Chief Executive Officer of Red Hat. “We
now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as
customers. These are some of the most sophisticated IT organizations in
the world, and many continue to increase their purchases from Red Hat to
modernize their IT infrastructure with cloud enabling technologies. As
evidence of this demand and Red Hat’s strong market position, we closed
a record number of first quarter deals of a million dollars or more.”

GAAP operating income for the first quarter was $51 million, down 10%
year-over-year. After adjusting for stock compensation, amortization
expenses and transaction costs related to business combinations, as
detailed in the tables below, non-GAAP operating income for the first
quarter was $88 million, up 2% year-over-year. For the first quarter,
GAAP operating margin was 12.0% and non-GAAP operating margin was 20.8%.

GAAP net income for the quarter was $38 million, or $0.20 per diluted
share, compared with $40 million, or $0.21 per diluted share, in the
year ago quarter. After adjusting for stock compensation, amortization
expenses and transaction costs related to business combinations, as
detailed in the tables below, non-GAAP net income for the quarter was
$64 million, or $0.34 per diluted share, as compared to $62 million, or
$0.32 per diluted share, in the year ago quarter.

Operating cash flow was $165 million for the first quarter, as compared
to $142 million in the year ago quarter. At quarter end, the company’s
total deferred revenue balance was $1.27 billion, an increase of 20% on
a year-over-year basis. Total cash, cash equivalents and investments as
of May 31, 2014 was $1.40 billion after repurchasing approximately $80
million, or approximately 1.6 million shares, of common stock in the
first quarter.

“Our global sales organization continued to execute at a high level
during Q1, leading to double digit growth in every region. This
execution, combined with the cross-selling of our expanded portfolio of
innovative technologies, contributed to organic subscription revenue
growth of 18% and operating cash flow growth of 16%, all of which were
above the high-end of our guidance,” stated Charlie Peters, Executive
Vice President and Chief Financial Officer of Red Hat.

Additional information on Red Hat's reported results, including a
reconciliation of the non-GAAP adjusted results, are included in the
financial tables below. A live webcast of Red Hat's results will begin
at 5:00 pm ET today and can be accessed by the general public at Red
Hat's investor relations website at http://investors.redhat.com.
A replay of the webcast will be available shortly after the live event
has ended.

About Red Hat, Inc.

Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to reliable and
high-performing cloud, Linux, middleware, storage and virtualization
technologies. Red Hat also offers award-winning support, training, and
consulting services. As the connective hub in a global network of
enterprises, partners, and open source communities, Red Hat helps create
relevant, innovative technologies that liberate resources for growth and
prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Actual results may differ materially
from those indicated by such forward-looking statements as a result of
various important factors, including: risks related to delays or
reductions in information technology spending; the effects of industry
consolidation; the ability of the Company to compete effectively; the
integration of acquisitions and the ability to market successfully
acquired technologies and products; uncertainty and adverse results in
litigation and related settlements; the inability to adequately protect
Company intellectual property and the potential for infringement or
breach of license claims of or relating to third party intellectual
property; the ability to deliver and stimulate demand for new products
and technological innovations on a timely basis; risks related to data
and information security vulnerabilities; ineffective management of, and
control over, the Company's growth and international operations;
fluctuations in exchange rates; and changes in and a dependence on key
personnel, as well as other factors contained in our most recent Annual
Report on Form 10-K (copies of which may be accessed through the
Securities and Exchange Commission's website at http://www.sec.gov),
including those found therein under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations". In addition to these factors, actual future performance,
outcomes, and results may differ materially because of more general
factors including (without limitation) general industry and market
conditions and growth rates, economic and political conditions,
governmental and public policy changes and the impact of natural
disasters such as earthquakes and floods. The forward-looking statements
included in this press release represent the Company's views as of the
date of this press release and these views could change. However, while
the Company may elect to update these forward-looking statements at some
point in the future, the Company specifically disclaims any obligation
to do so. These forward-looking statements should not be relied upon as
representing the Company's views as of any date subsequent to the date
of this press release.

Red Hat, Red Hat Enterprise Linux, the Shadowman logo, and JBoss are
trademarks of Red Hat, Inc., registered in the U.S. and other countries.Linux is the registered trademark of Linus Torvalds in the U.S. and
other countries.

Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
In his session at 19th Cloud Exp...

"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.

The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...

Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York
The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York.
Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...

You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things.
In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud.
Spoiler Alert: He also makes sure you don’t...

President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now.
In his session at 19th Cloud Expo, Chris Webber, security strateg...

"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.

Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems.
In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.

The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...

Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?

Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office.
In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...

"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.

Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...

In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.

The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location.
In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...

The holiday season is nearly upon us (I’ve already heard Christmas songs being played…really?) and retailers are usually the big winners during the holiday season. However, leading retailers are already thinking beyond the current holiday season, and not just from marketing and merchandising perspectives. These leading retailers are considering how this holiday season – and the resulting wealth of...

I was on a high-rise construction site 34-floors above the city. I was talking to the construction crew when a fight broke out. There was an explosion and the floor collapsed. I removed the virtual reality (VR) goggles and laughed. It was so real. The VR solutions provided an incredible experience, almost like being there. As good as my experience was, it was not reality. It was a controlled pre-p...

The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-s...

Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York
The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York.
Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, s...

As we enter the final week before the 19th International Cloud Expo | @ThingsExpo in Santa Clara, CA, it's time for me to reflect on six big topics that will be important during the show. Hybrid Cloud: This general-purpose term seems to provide a comfort zone for many enterprise IT managers. It sounds reassuring to be able to work with one of the major public-cloud providers like AWS or Microsoft ...

When was the last time you’ve ever heard anyone say “IT Applications & Operations”? Frankly, in my 30+ year career in IT, I don’t believe I’ve ever heard anyone use this term. The typical term we hear is IT Infrastructure & Operations. These two go together like Peanut Butter and Jelly, which tells us a lot about how we view the field of IT. For those that may not be familiar with the role of IT ...

Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, a...

Multiple agencies across the U.S. government are paying closer attention to the software they are buying. More specifically, they want to know what open source and third party components were used to build the software applications. The report notes:
U.S. Food and Drug Administration (FDA) wants to know what open source components are being used in medical devices.

2016 brought about more cyberattacks than we thought possible, especially involving ransomware, and we definitely won't see that trend breaking stride in 2017. By next year, we expect every single adult in the US will know a blood relative that has had their identity stolen - the Internal Revenue Service reported that 2.7 million people had their identities stolen in 2014 and according to TransUni...

I’m a huge fan of open source DevOps tools. I’m also a huge fan of scaling open source tools for the enterprise. But having talked with my fair share of companies over the years, one important thing I’ve learned is that you can’t scale your release process using open source tools alone. They simply require too much scripting and maintenance when used that way. Scripting may be fine for smaller org...

Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of te...

In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential.
Manish Dixit is VP of Pr...

For large enterprise organizations, it can be next-to-impossible to identify attacks and act to mitigate them in good time. That’s one of the reasons executives often discover security breaches when an external researcher — or worse, a journalist — gets in touch to ask why hundreds of millions of logins for their company’s services are freely available on hacker forums.
The huge volume of incomin...

Monitoring of Docker environments is challenging. Why? Because each container typically runs a single process, has its own environment, utilizes virtual networks, or has various methods of managing storage. Traditional monitoring solutions take metrics from each server and applications they run. These servers and applications running on them are typically very static, with very long uptimes. Docke...

Logs are continuous digital records of events generated by all components of your software stack – and they’re everywhere – your networks, servers, applications, containers and cloud infrastructure just to name a few. The data logs provide are like an X-ray for your IT infrastructure. Without logs, this lack of visibility creates operational challenges for managing modern applications that drive t...

@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.

The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location.
With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly impo...

Modern organizations typically use several IT tools to monitor their applications, networks and other IT components in real time. Unfortunately, this leads to independent data islands, which creates a one-dimensional view of IT. In order to make strategic decisions, organizations need an IT operational analytics tool to analyze data from multiple sources, spot trends and make better decisions.

The IoT continued its toddler-like growth and stumbles in 2016. Here are five trends to look for in 2017 as the IoT enters its adolescence and how to benefit from them.
1. Ecosystems begin to determine winners and losers
Previously these were nice in-the-future concerns; now they will really count. Filling out a whole product value proposition through partnerships has repeatedly proven its impo...

Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair
The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY.
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand an...

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.